When they stop having an exit. When their time, money, and name are tied to this one thing. When walking away would cost them as much as it costs you.
I reflected on the blurry line between a helper and a co‑founder in early‑stage companies, especially when founders are in their early 20s.
- Exit cessation – the individual no longer has a planned exit as a “helper.”
I decided to recognize co‑founder status only when all three criteria above are met, to avoid premature claims that can cause equity disputes and misaligned expectations.
- Full stake‑in – their time, money, and personal brand become fully tied to the venture.
- Irreversible cost of departure – leaving would impose a cost on the founder comparable to the cost of keeping the person.